Ryan Mahoney (Dubai, UAE): CRC’s 2021 Commercial Property Market Report

Benefiting from extensive experience and expertise of the UAE property market, Ryan Mahoney (Dubai, UAE) is the CEO of both Better Homes and CenCorp. A serial entrepreneur, Ryan Mahoney has been heavily involved in many startup businesses, including Octopus, PetHaus, MasterKey, Dubizzle, and Taqado. This article will explore the findings of the Commercial Real Estate Consultants (CRC) Commercial Property Market Report for the 2021 financial year (CRC is part of CenCorp, a conglomerate of real estate-related businesses).

With the aim of kickstarting the country’s economy in the wake of disruption caused by COVID-19, the Dubai Government passed a raft of new legislation, including switching to a new Monday to Friday working week in line with that adopted in most other countries. In addition, the government introduced a new sector-specific visa scheme for professionals. Experts have praised the Dubai Government’s efforts to stimulate the economy, which have been a resounding success – particularly in the country’s commercial real estate sector.

In Dubai’s property sector, 2021 marked a turning point. Largely triggered by the government’s positive economic reforms, both demand and prices for commercial real estate overtook even pre-COVID-19 levels.

While many countries continue to grapple with economic fallout from COVID-19, Dubai’s commercial property sector has made a virtually complete recovery. Confidence is steadily building amongst business owners, who are increasingly buoyant about the future of their enterprises – sparking an increasingly common desire to acquire larger and better premises over a longer duration.

The resumption of international travel combined with Dubai hosting EXPO 2020 triggered the arrival of six million tourists by the end of November 2021, according to Khaleej Times, surpassing international arrivals for the whole of 2020. As a result of this, retailers also benefited from a considerable increase in footfall.

The CRC Commercial Property Market Report FY 2021 suggested that commercial property prices would continue to rise across Dubai, spurring increased confidence in the property market as a whole. Dubai Silicon Oasis, Downtown Dubai, Al Barari, Jumeirah Lake Towers, and Barsha Heights all ranked highly in terms of the most sought-after locations for retail and office property sales, but Business Bay ranked highest at 166 unit sales in 2021.

Throughout 2021, 7,179 commercial property sales were transacted, equating to a 19% increase on 2020 figures. Total transacted value reached almost 31 billion, representing a 35% increase on the previous year.

Today, even in the wake of the pandemic, Dubai continues to demonstrate one of the most buoyant economies in the whole of the Middle East. Experts anticipate that this is not a situation that is likely to change soon, with the country remaining extremely attractive to both domestic and foreign investors.